Technology that works best for your plan and participants

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2 Technology that works best for your plan and participants

3 Today s Agenda Meet Today s Panelists Kick Off Questions Group Q&A Discussion

4 Meet Today s Panelists Jean Martone, Director, Retirement Plans Consulting Group, PEI Matthew McOsker, VP, Product Development, T. Rowe Price Retirement Plan Services Joe Saari, CEO, Financial Fitness Group Sonja Kellen, Director, Global Retirement, Microsoft Corporation

5 Pension & Investments Summary of Relevant Research Joe Saari, CEO Financial Fitness Group

6 Overview of Relevant Research ( ) Research - Worked with over 20 universities, state security regulators, and non-profits over 5YRs Explore best practices in technology, psychology and an online competition to improve financial well-being 700+ employers + 100K employees 400K+ hours of education 20M+ data points collected over 5YR period

7 What s the Goal of the Research?

8 What s the Problem the Research Seeks to Solve? Employers spend over $2B annually on employee benefit communications with very little meaningful or measurable results. Current solutions are not working. 750,000 employers 100 million employees Newsletters Workshops Advice Efficacy Attendance Trust

9 The Methodology Refine and Improve Over 5YRS The initial project started with a 80+ companies and roughly 4000 employees who participated in project with control + sample group. Research has expanded significantly over past 5YRS

10 Extensive Research Over 5YRS ( ) Over 700 employers and more than 100,000 employees from virtually every industry segment Manufacturing Transportation Hospitality Government Non-Profit High-Tech Financial Services Law Enforcement Education Professional Services Agriculture Energy Food Service Tax & Accounting Bio-Tech & Life Science Information Technology Retail Insurance Healthcare and many, many, more..

11 Some of the Companies Involved in the Research

12 Summary of Some of the Results ( ) Financial Fitness at Work Significant Improvement in Behaviors Use of Budgets and Financial Plans Retirement Savings Better Use of Benefits Up to 500 % Better engagement than traditional methods Up to improvement in 70 % and behavior knowledge, attitudes Decreased Debt Fewer Late Fees Less Financial Stress

13 Highly Engaged Users Data Can Drive Improvements hours per employee unique data points Engaged users + ample data provides employers + researchers a unique opportunity to understand (and improve) financial knowledge, attitudes and behaviors

14 Meet Today s Panelists Jean Martone, Director, Retirement Plans Consulting Group, PEI Matthew McOsker, VP, Product Development, T. Rowe Price Retirement Plan Services Joe Saari, CEO, Financial Fitness Group Sonja Kellen, Director, Global Retirement, Microsoft Corporation

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16 Surface FY countries 128k employees (48% US) $86B Net Revenue $22B Net Income Our industry does not respect tradition it only respects innovation. Satya Nadella, Microsoft CEO

17 How People Spend their Time

18 How People really Spend their Time

19 Fast and Fluid Listen to playlist while jogging Analyze campaign effectiveness, research family vacation Navigate to airport, while hands free texting, check in via phone In the air: Play Angry Birds, watch movie, catch up on mail In the hotel: Skype with daughter back home. Download latest sales data Check RSS feeds and tweets from overnight Post relevant ones to team share Avoid traffic Participate in conf. call Lync chat with team to make adjustments After landing: Pick restaurant, post photo of meal Consumer Commercial

20 401(k) Plan $12B Assets 76k participants (25% terminated) 90% participation 9% median savings rate (+3% match) Notable Features No Auto Enrollment High Roth usage (>20%) Roth In Plan Conversion Low average investment expense (0.26%) No account fees High rate of maxing out 402g limit (~30%)

21 Today s Agenda Meet Today s Panelists Kick Off Questions Group Q&A Discussion

22 Kick Off Questions How can your plan use technology to inspire participants to take action? When do mobile apps or internet based programs work best? What is the best use of technology to engage all employees at all locations? How will technology save time and money for the plan sponsor and be more effective for plan participants? What about security and privacy controls?

23 What percentage of people in the U.S. currently own smartphones? A. 30% B. 45% C. 60% D. 75%

24 What percentage of smartphone and tablet owners use their device in front of the TV? A. 20% B. 40% C. 80% D. 90%

25 How can your plan use technology to inspire participants to take action? Key Trends Technology adoption is higher than ever Importance of a unified platform Lessons Learned from Research Journey of 1000 miles starts with a single step - Financial Fitness Checkup Leveraging data to provide personalized financial action plan Over 20 million data points to refine and improve results

26 When do mobile apps or internet based programs work best? Unified Platform Continuity Instant online access on any device Current and changing user behaviors Start on one device finish on another Industry usage & company demographics Time of day Demographics & details of your workplace Do your employees work at a desk? Have a computer on the job?

27 What is the best use of technology to engage all employees at all locations? Unified and simple platform Instant online access 24-7 (from any device) Make it simple (Access without login when possible) Look for teachable moments to engage (when checking their balance, etc.) Lessons learned research Event based marketing can make an impact (make it fun) Smart use of technology can reduce costs and drive better engagement Measurable and meaningful results (data & online dashboard)

28 Kick Off Questions How can your plan use technology to inspire participants to take action? When do mobile apps or internet based programs work best? What is the best use of technology to engage all employees at all locations? How will technology save time and money for the plan sponsor and be more effective for plan participants? What about security and privacy controls?

29 Microsoft Case Study Goal Improve financial wellness and help employees optimize their savings behavior Challenge Ensure that the implementation of multiple specialized tools didn t add additional confusion Anticipated Outcome Employees will understand the one action they need to take to optimize their 401(k)

30 Microsoft Case Study 60K Employees with Unique Behavior Identify Core Optimization Opportunities / Messages Permeate Consistent Messaging across Multiple Systems Not participating Not saving up to match Not maxing pre-tax/roth deferrals Not utilizing catch-up Not maximizing after-tax Review investment strategy campaign Total Rewards Portal External Financial Planning Platform Recordkeeping Platform Internal Benefits Web Reinforced through Know Your Numbers campaign

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32 HRweb Total Rewards

33 myfitage

34 Fidelity (recordkeeper)

35 Financial Wellness Evolution through Technology through Messaging

36 Results September 2013 Launched myfitage & Financial Engines February 2014 Targeted campaign August 2014 Launched //Rewards & //Benefits portals Participation Participating, but deferring < Match Overall Deferral Rate 86% 90% 13% 8% 9% 10%

37 How will technology save time and money for the plan sponsor and be more effective for plan participants? Over $2B spent annually on antiquated delivery models (workshops, newsletters, one-on-one meetings, etc.) Workshops, seminars, one-on-one coaching or enrollment meetings costly to coordinate. Time intensive. Ineffective. Using best practices in technology + psychology + online competition can drive 5X engagement at ¼ the cost

38 What about security and privacy controls? Across the industry and there are no competitive barriers Balance security and effectiveness

39 Kick Off Questions How can your plan use technology to inspire participants to take action? When do mobile apps or internet based programs work best? What is the best use of technology to engage all employees at all locations? How will technology save time and money for the plan sponsor and be more effective for plan participants? What about security and privacy controls?

40 bing Questions?

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